Why Lisbon Fails
Cesifo Economic Studies, 2009, 55, 1, 145-164
RUTA, Michele, Why Lisbon Fails, Cesifo Economic Studies, 2009, 55, 1, 145-164 - https://hdl.handle.net/1814/16608
Retrieved from Cadmus, EUI Research Repository
This article looks at the political economy of structural reforms and growth in the European Union. As the EU's economy approaches the world technology frontier, structural reforms that increase competition in intermediate goods sectors are necessary to boost innovation and productivity growth-the main objective of the Lisbon Agenda. Such reforms, however, raise the opposition of incumbents and, therefore, are politically difficult to implement. When there are important policy spillover effects, national governments are more easily captured by vested interests, as they fail to internalize the benefits of reforms on the rest of the Union. This suggests that the weak political governance of the Lisbon Agenda, which is centred on the peer pressure of national governments, and the ensuing inability to complete the single market in non-manufacturing sectors, explains the Lisbon failure. (JEL classification: D72, F42, O30, O40).
Cadmus permanent link: https://hdl.handle.net/1814/16608
Full-text via DOI: 10.1093/cesifo/ifn027
Publisher: Oxford Univ Press
Keyword(s): European Union structural reforms lobbying growth
Files associated with this item
There are no files associated with this item.